Reeves made some wise choices in the Budget but we’re only just facing up to the investment needed for the...

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With a challenging fiscal backdrop, the UK’s first woman Chancellor, Rachel Reeves, made some wise, level-headed calls at the government’s Budget today.

The new government has promised to deliver a "decade of national renewal", repairing what has broken and rebuilding what has been ruined. Sustained cuts to public services, a difficult Brexit and of course, the Truss mini-Budget has left much to do. Public investment is sorely needed given that the UK has had the lowest levels of investment in the G7 for most of the past 30 years.

Instead, she announced new revenue-raising measures including increases in capital gains tax , the tax on income from wealth, as well as increases to employer National Insurance. The changes to CGT are a welcome step to make our tax system fairer, although there is still a way to go before different types of income are treated equally.The uplift from increased tax revenue will be used primarily to support increased day-to-day spending for the NHS, the public’s primary concern.

 

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